Ethereum failed to break the $ 3,650 resistance against the US dollar. ETH price is moving down and could extend its decline below $ 3,450 in the short term.
- Ethereum struggled to gain strength above the $ 3,600 and $ 3,620 levels.
- The price is now trading below $ 3,550 and the 100-hour simple moving average.
- A major bearish channel is forming on the hourly chart of ETH / USD (data feed via Kraken) with resistance near USD 3,550.
- The pair could slide towards $ 3,350 unless it breaks the $ 3,550 resistance zone.
Ethereum price faces hurdles
Ethereum was unable to settle above the USD 3,600 pivot level. ETH made a high near $ 3,620 and began a downward correction. There was a break below the $ 3,550 support and the 100-hour simple moving average.
The price even broke the 50% fib retracement level of the move up from the low of $ 3,375 to the high of $ 3,620. Ether is now trading below the $ 3,520 level and is now consolidating near the $ 3,500 level. Initial support on the downside is near $ 3,480.
Immediate resistance to the upside is near the $ 3,635 level and the 100-hour SMA. The first major resistance is near the $ 3,550 mark. A major bearish channel is also forming on the hourly chart of ETH / USD with resistance near USD 3,550.
Source: ETHUSD on TradingView.com
The next major resistance is near the $ 3,560 level, above which the price could start a new spike. In the case mentioned, the price could rise to the USD 3,620 level. The next major resistance could be at $ 3,650.
Dips Limited at ETH?
Unless Ethereum continues above the $ 3,550 and $ 3,560 resistance levels, it could prolong its decline. Initial support on the downside is near $ 3,480. The first major support is now forming near the $ 3,450 level.
It is near the 61.8% Fib retracement level of the move up from the low of $ 3,375 to the high of $ 3,620. A break down could lead the price towards the USD 3,400 support zone in the short term. Further losses could push the ether price towards the USD 3,375 support zone. The next major support could be $ 3,300.
Hourly MACD – The MACD for ETH / USD is picking up pace in the bearish zone.
Hourly RSI – The RSI for ETH / USD is now below the 50 mark.
Great level of support – $ 3,440
Great resistance level – $ 3,550